Inheritance Tax 2007/08
| Transfers on or Within Seven Years Before Death |
|
2006/07 |
2006/07 |
| Nil rate band to |
£300,000 |
£285,000 |
| Rate of tax on balance |
40% |
40% |
| Chargeable lifetime transfers |
20% |
20% |
|
The thresholds for future years have already been announced...
2008/09 - £312,000
2009/10 - £325,000
20010/11 - £350,000
All lifetime transfers not covered by exemptions and made within seven years of death will be added back into the estate for the purpose of calculating the tax payable. This may then be reduced by taper relief.
| Charge on Gifts Within 7 Years of Death |
| Years before death |
0-3 |
3-4 |
4-5 |
5-6 |
6-7 |
| Tax reduced by |
0% |
20% |
40% |
60% |
80% |
|
| Main Reliefs |
| Business property: |
| - business or interest therein |
100% |
| - qualifying shareholders in unquoted* companies |
100% |
| - land, buildings, machinery, or plant used by transferor's controlled company or partnership |
50% |
| Agricultural property |
50% or 100% |
| *Unquoted companies include those listed on AIM |
|
Other Reliefs:
Annual gifts of up to £3000 per donor are exempt.
Small gifts £250
Marriage gifts...
- parent £5,000
- grandparent £2,500
- bride/groom £2,500
- other £1,000
|
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